WSJ: Bair calls Obama housing program rules ‘stupid’

Alan Zibel from the Wall Street Journal blogs that the former chairman of the Federal Deposit Insurance Corp., Sheila Bair found some requirements under Obama administration housing plans illogical.

“To require every borrower to essentially prove that he or she could qualify for a new loan was stupid—the loan had already been made,” Ms. Bair writes in her latest book “Bull By The Horns.”

“Given the huge number of loans that needed to be reworked, as well as the problem of ill-trained, understaffed servicers, the cumbersome process was doomed to failure,” Zibel quotes from the book.

Obama’s top advisers “were determined to keep me out of the design and operation of any of the programs from the very beginning,” Ms. Bair writes. The program, she writes, was “designed to look good in a press release, not to fix the housing market.”

Read the full article here.

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